Mullingar CU generates €2.8m surplus but no sign of abating in challenges facing credit unions
The Mullingar Credit Union (MCU) Annual General Meeting is due to be held on Wednesday 26th January at 7pm where members will hear that MCU had a successful financial year to the end of September 2021 and achieved a surplus of over 2.8 million euros. .
The MCU is unable to hold its regular AGM in person due to Covid-19 restrictions, so the meeting will once again be held online. Members wishing to attend the AGM online will need to pre-register on their website www.mullingarcu.ie
The MCU Annual Report is distributed to members, both by mail and online. For the current year, revenues and expenses of the Longford branch are included for the full year whereas the previous year they were only included for eight months after the transfer of commitments in January 2020.
Mullingar Credit Union Chairman Paul Isdell explained that the Credit Union generated a surplus of 2.8 million euros for the year, an increase of more than 1.25 million euros compared to the previous year.
Member savings now amount to more than €350 million and loans to members increased by nearly €4 million during the year to reach just under €86 million at September 30, 2021.
MCU reserves were 54 million euros and total revenue increased by more than 600,000 euros to 9.13 million euros. “This was primarily due to an increase in interest on earned loans,” Isdell noted.
The President mentioned the operational and financial pressures facing both the MCU and the wider credit union movement, including the continued inflow of savings, low returns on available investments and low demand for loans.
Mr. Isdell added, “The environment has not changed significantly and these challenges show no signs of abating. I expect this will lead to continued restructuring of the credit union movement. This will see fewer credit unions in number, but most likely more credit union members, as these fewer credit unions will have an expanded range of services.
Work is underway to implement the decision taken by members at last year’s AGM to change the name of Mullingar Credit Union to North Midlands Credit Union and it is hoped to launch the new brand as North Midlands Credit Union on March 1, 2022.
Mr Isdell commented: “With the credit union now operating in five branches (Mullingar, Longford, Castlepollard, Kinnegad and Rochfortbridge), this new name will give us an identity, while maintaining our connection to each locality. I would like to thank the rebranding committee very much for all their hard work in developing the new look.
Highlighting how the savings continue to grow on a monthly basis, Mr. Isdell said MCU, to date, has maintained a limit on the maximum savings a member can have at €100,000.
However, he pointed out, “this rate of savings growth is not sustainable in the long term and at some point we may have to take steps to curb the increase in savings. . Other credit unions have introduced reduced savings limits and other measures to achieve this. The Board of Directors monitors the increase in savings monthly and will continue to assess the situation and make the necessary decisions. »